FNKO — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-11-05

• Three Months Ended September 30,Nine Months Ended September 30,

• (1)Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA are financial measures not calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), or non-GAAP financial measures. For a reconciliation of EBITDA and Adjusted EBITDA to…

• Three Months Ended September 30, 2026 Compared to Three Months Ended September 30, 2025

• The following table sets forth information comparing the components of net income for the three months ended September 30, 2026 and 2025:

• Less: net income attributable to non-controlling interests33 47 (14)(29.8)%

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• (1)Earnings before interest, taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA are financial measures not calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), or non-GAAP financial measures. For a reconciliation of EBITDA and Adjusted EBITDA to…

• Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025

• The following table sets forth information comparing the components of net income (loss) for the three months ended June 30, 2026 and 2025:

• Less: net income (loss) attributable to non-controlling interests61 (514)575 (111.9)%

• Net sales were $207.7 million for the three months ended June 30, 2026, an increase of 7.4%, compared to $193.5 million for the three months ended June 30, 2025. The increase in net sales was due primarily to increased sales of core Pop! products and the impact of price increases that went into effe…

Text added vs the prior filing · source: 10-Q · 2026-11-05

• Management, with the oversight of the Audit Committee of the Board of Directors, is committed to remediating the material weaknesses. We are executing plans intended to remediate them using both internal and external resources. Actions taken to date and ongoing activities include:

• •We have prepared a remediation plan for each of the material weaknesses and are in the process of designing and implementing new controls and enhancing existing controls, providing training to process and control owners, and implementing monitoring activities to evaluate control adoption and execut…

• •During the quarter, we designed and implemented controls over the preparation and review of journal entries at a foreign subsidiary. The newly designed controls have been implemented, and management is in the process of testing the operating effectiveness;

• •During the quarter, we designed and implemented segregation-of-duties monitoring controls for certain systems relevant to financial reporting and will continue to design and implement controls for the remaining relevant systems; and

• •We completed training for control owners concerning control requirements related to user access and change management over certain IT systems impacting financial reporting. We are in the process of testing the design and operating effectiveness of the controls for those systems and will continue to…

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• During the first half of fiscal 2026, with the oversight of the Audit Committee of the Board of Directors, management has been executing and remains committed to implementing measures designed to ensure that the control deficiencies contributing to the ongoing material weaknesses are remediated, suc…

• •We have prepared a remediation plan for each of the material weaknesses and begun training process owners, developing new controls, enhancing existing controls, evaluating process adoption and monitoring results;

• •We are in the process of designing and implementing segregation of duties monitoring controls related to all systems relevant to financial reporting;

• •We are in the process of designing and implementing controls addressing the reliability of relevant systems and relevant information; and

• •We are in the process of training control owners concerning control requirements related to user access and change management over IT systems impacting financial reporting.

Text added vs the prior filing · source: 10-Q · 2026-11-05

• On May 8, 2026, plaintiffs Peter Dirksen, Aviva Copaken, and Steven Beltran filed a putative class action complaint against the Company in the United States District Court for the Western District of Washington. The complaint asserts nine causes of action relating to alleged invasions of privacy, wi…

• On October 15, 2026, plaintiff Danielle Skarpnes filed a putative class action complaint captioned Skarpnes v. Funko, Inc., et al. against Funko, Inc. and Funko, LLC in the Superior Court of the State of California, County of Solano (Case No. CU26-10085). The complaint alleges that Funko Pop! flocke…

• business, operating results and financial condition, and negatively affect the price of our Class A common stock. In addition, such lawsuits may make it more difficult to finance our operations.

• Our use of artificial intelligence technologies, and the use of such technologies by our business partners, competitors and other third parties, could expose us to operational, legal, regulatory, intellectual property, reputational and other risks.

• We use, and expect to increasingly evaluate and use, artificial intelligence, including generative artificial intelligence (“AI”), in certain aspects of our business, products and operations. The development and use of AI technologies are rapidly evolving and may present risks that are difficult to …

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• •successfully launch and grow new product lines similar to Pop! Yourself;

• As digital assets are a relatively new and emerging asset class, the regulatory, commercial, and legal framework governing digital assets and associated products and services is likely to evolve both in the U.S. and internationally and implicates issues regarding a range of matters, including, but n…

• On May 8, 2026, plaintiffs Peter Dirksen, Aviva Copaken, and Steven Beltran filed a putative class action complaint against the Company in the United States District Court for the Western District of Washington. The complaint asserts nine causes of action relating to alleged invasions of privacy, wi…

• We filed a motion to dismiss the complaint on July 17, 2026, asserting lack of standing, application of improper law, and failure to state a claim upon which relief may be granted. Concurrently, we also filed a motion to compel arbitration with respect to one of the plaintiffs. The motions are sched…

• The further development and acceptance of blockchain networks, which are part of a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of blockchain networks and blockchain assets could have a…

Text added vs the prior filing · source: 10-Q · 2026-11-05

• During the three months ended September 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “ non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

Text removed vs the prior filing · source: 10-Q · 2026-08-06

• On May 12, 2026, Tracy Daw, Chief Legal Officer and Secretary, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 284,664 shares of the Company’s common stock between August 13, 2026 and December 31, 2026, subject to certain conditions.

• On May 13, 2026, Yves Le Pendeven, Chief Financial Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 112,863 shares of the Company’s common stock between September 1, 2026 and March 31, 2027, subject to certain conditions.

• Other than the foregoing, during the three months ended June 30, 2026, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.